Study Guides (380,000)
US (220,000)
UC-Irvine (3,000)
ECON (300)
Study Guide

ECON 20A Study Guide - Comprehensive Midterm Guide: Invisible Hand, Market Power, Lifesaving


Department
Economics
Course Code
ECON 20A
Professor
Jiawei Chen
Study Guide
Midterm

This preview shows pages 1-3. to view the full 19 pages of the document.
UC-Irvine
ECON 20A
MIDTERM EXAM
STUDY GUIDE

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Econ20ALecture1SyllabusandChapter1:TenPrinciplesofEconomics
Syllabus
● Instructor:Prof.JiaweiChen
● Office:SSPA3187
● OfficeHours:Th9:3010:30
Grading
○ weeklyhomeworkassignments(20%ofyourgrade;dueMondaysat12noon)
○ amidterm(30%;Tuesday,October25,2:003:20pm,Week5)
○ afinal(50%;Thursday,December8,1:303:30pm,finalsweek)
○ acurvewhenassigningtheoverallcoursegrades
● HomeworkAssignment
Eachassignmentisworththesameweight
usethepercentagecorrectasthescoreontheassignment.
threefreepasses,thatis,yourthreelowestassignmentscoresaredropped.
● Exam
Thefinalisbasedonthematerialcoveredafterthemidterm.
Therewillbenomakeupexams.Youmusthaveadocumentedemergencyor
medicalreasonandmyapprovalinordertomissanexam,inwhichcaseyour
otherexamwillbeworth80%ofyourgrade.
Bringpencils,acalculator,yourUCIpictureID,andaScantronform(F288,
availableatthecampusbookstore)toeachexam.
ChapterOutline
○ Printouttheoutlineforeachchapterandbringittoclass
○ Fillintheblanksandtakeadditionalnotesdirectlyontheoutlines
Discussion 
○ onceaweekindiscussionsectionsledbytheTAs
○ reviewlecturesandproblems,butnewmaterialisoccasionallypresented
○ SectionmeetingsandTAofficehoursstartfromWeek2
EconLearningCenter
○ Walkintutoring
○ SST165
Chapter1
Answerstothesequestions:
● Whatkindsofquestionsdoeseconomicsaddress?
● Whataretheprinciplesofhowpeoplemakedecisions?
● Whataretheprinciplesofhowpeopleinteract?
● Whataretheprinciplesofhowtheeconomyasawholeworks?
WhatEconomicsIsallAbout
● Scarcitythelimitednatureofsociety'sresources
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

● Economicsthestudyofhowsocietymanagesitsscarceresources
○ Ex:wemakeourbestchoicefromwhatwehave
○ howpeopledecidewhattobuy,howmuchtowork,save,andspend
○ howfirmsdecidehowmuchtoproduce,howmanyworkerstohire
○ howsocietydecideshowtodivideitsresourcesbetweennationaldefense,
consumergoods,protectingtheenvironment,andotherneeds
● HowPeopleMakeDecisions
○ Principle#1:PeopleFaceTradeoffs
■ Alldecisionsinvolvetradeoffs.Examples:
● Goingtoapartythenightbeforeyourmidtermleaveslesstimefor
studying.
● Havingmoremoneytobuystuffrequiresworkinglongerhours,
whichleaveslesstimeforleisure.
● Protectingtheenvironmentrequiresresourcesthatcould
otherwisebeusedtoproduceconsumergoods.
■ Societyfacesanimportanttradeoff:efficiencyvs.equality
● Ex:10peopleonlyneedtospend10minutesinclassforanA+;
othersneedmoretimetoimprove;professorwillonlyconfuseon
those10people(efficiency)orprofessorwillgiveeveryonemore
timetoimprovehisorherskill(equality)
■ Efficiency:whensocietygetsthemostfromitsscarceresources
■ Equality:whenprosperityisdistributeduniformlyamongsociety’s
members
■ Tradeoff:toachievegreaterquality,couldredistributeincomefrom
wealthytopoor.Butthisreducesincentivetoworkandproduce,shrinks
thesizeoftheeconomics“pie”
○ Principle#2:TheCostofSomethingisWhatYouGiveUptoGetIt
■ Makingdecisionsrequiredcomparingthecostsandbenefitsofalternative
choices
■ Needtounderstandthecostformakingagooddecision
■ Theopportunitycostofanyitemiswhatevermustbegivenuptoobtainit
■ Itistherelevantcostfordecisionmaking
■ Ex:THeopportunitycostofgoingtocollegeforayearisnotjustthe
tuition,books,andfees,butalsotheforegonewages.
■ Ex:theopportunitycostofseeingamovieisnotjustthepriceofthe
ticket,butthevalueofthetimeyouspendinthetheater
○ Principle#3:RationalPeopleThinkattheMargin
■ Rationalpeoplewanttomakethebestforthemselves
● Thinkofsmallchangestowhatevertheyaredoing
● Ex:studyanhourmoretogetabettergradeorgetanotherhour
ofsleep
■ Marginalthinkingisthinkingincrementally
● Notthinkabouttheopportunitycost
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version